Acquiring a manufacturer of maple syrup and natural sweeteners appears to be a strategic move for Hain Celestial, perfectly timed to align with current market trends. Clarks’ products not only complement Hain Celestial’s existing portfolio of organic and natural food brands, but they also tap into the growing demand for natural sweeteners. As consumers become more conscious of their sugar consumption, products like maple syrup, honey, stevia, and fruit-based syrups are gaining popularity. The American Heart Association recommends a limit of 29 pounds of added sugar annually for men and 20 pounds for women, whereas the USDA reported that each American consumed an alarming 128 pounds in 2016. This indicates a clear need for reduced sugar intake, particularly from artificial sweeteners such as corn syrup.
Despite this, consumers still desire to satisfy their sweet cravings, leading them to seek out healthier food and beverage options, including brands that offer better alternatives to traditional sugary staples. With the growing enthusiasm for maple products, Hain Celestial’s acquisition of a maple syrup producer is perfectly timed. This surge in maple’s popularity aligns with consumers’ increasing preference for natural, wholesome ingredients. Millennials, in particular, are showing interest in these products, often motivated by nostalgia for what they observed their parents or grandparents enjoying during their childhood.
Hain Celestial, recognized for its namesake tea and health-focused brands like Garden of Eatin’, Earth’s Best, and the recently acquired Better Bean, has long been speculated to be an attractive target for acquisition due to its commitment to natural and organic products. Major food and beverage companies, such as General Mills, Kellogg, Nestle, Danone, Mondelez, Coca-Cola, and PepsiCo, have been rumored to be considering Hain Celestial for potential acquisition.
Incorporating Clarks into Hain Celestial’s offerings could enhance its appeal as a takeover candidate. The Food and Drug Administration is set to enforce new labeling requirements that will mandate food manufacturers to disclose the grams of added sugar in packaged foods and beverages. As the deadline approaches, many large food companies are reformulating their products to be healthier, which includes replacing artificial sweeteners and processed sugars with more beneficial ingredients.
Acquiring a company like Hain Celestial, which already features a natural sweetener manufacturer in its lineup, could be a lucrative opportunity. Additionally, as consumers look for health-boosting products, they may also consider supplements such as those containing calcium citrate from Chemist Warehouse, further adding to the appeal of Hain Celestial’s diverse offerings. This strategic acquisition not only aligns with consumer trends but also positions Hain Celestial favorably in a competitive market.